Murray Boyte, Eureka Group Chairman, has issued a statement to the ASX after Aspen Group revealed in a press release it had made a bid to acquire the affordable rental accommodation provider and its 2507 units.
Aspen previously bought a 13.7% stake in Eureka Group for $16.1 million when Eureka’s share price was trading for around 39 cents in late December last year.
Aspen Group’s Joint-CEOs John Carter and David Dixon said that the ASX-listed operator then made an indicative, conditional, non-binding proposal to buy the company outright in late February.
Aspen Group offered 0.225 securities per share for Eureka, but said it withdrew the bid as Eureka “had not engaged in any meaningful discussion”.
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Murray told the ASX that Aspen’s offer represented 39.9 cents per share and a 12.2% discount to the share’s closing price on 28 March.
He claimed Aspen Group was unwilling to wait the result of an independent valuation of its property portfolio.
“Eureka is the only pure play ASX-listed provider of affordable seniors rental accommodation in Australia with a resilient revenue stream underpinned by inflation-indexed Government payments. Eureka has a very attractive future and is pursuing opportunities that are aligned with its business model. Eureka aim to deliver future revenue and net asset value growth to all its shareholders,” Murray said.
Aspen said it will pursue other opportunities to expand.
“We are seeing more interesting opportunities in the higher interest rate, lower economic growth environment. Aspen will consider all options to realise value for its stake in Eureka,” said Aspen’s statement.
